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Edited version of private advice
Authorisation Number: 5010066771413
Date of advice: 28 April 2020
Ruling
Subject: Rental property expenses
Question
Are you entitled to claim a deduction for the special purpose levies raised for repair work undertaken on your rental property?
Answer
Yes. Your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible. Further information about repairs can be found by searching 'QC 23635
This ruling applies for the following periods:
Year ended 30 June xxxx
Year ending 30 June xxxx
The scheme commences on:
1 July xxxxx
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are the sole owner of a rental property which has had major repairs to concrete beams due to concrete cancer.
Your property is one of a block of units and your share of the cost of remedial work was $xxxxx.
The property is approximately xx years old, and you inherited it in xxxx xxxx.
The need for repairs was not evident when you inherited the property.
The property has been rented for many years before you inherited it, and you have never lived in it.
Concrete beams were deteriorating and concrete was falling into a schoolyard next door. The beams were replaced with the same material.
The amounts for the repairs have been raised by a series of special levies which are continuing to cover the costs.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1,
Income Tax Assessment Act 1997 Section 25-10 and
Income Tax Assessment Act 1997 Subsection 25-10(3).